Correlation Between Good Times and Chuys Holdings
Can any of the company-specific risk be diversified away by investing in both Good Times and Chuys Holdings at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Good Times and Chuys Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Good Times Restaurants and Chuys Holdings, you can compare the effects of market volatilities on Good Times and Chuys Holdings and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Good Times with a short position of Chuys Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Good Times and Chuys Holdings.
Diversification Opportunities for Good Times and Chuys Holdings
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Good and Chuys is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Good Times Restaurants and Chuys Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chuys Holdings and Good Times is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Good Times Restaurants are associated (or correlated) with Chuys Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chuys Holdings has no effect on the direction of Good Times i.e., Good Times and Chuys Holdings go up and down completely randomly.
Pair Corralation between Good Times and Chuys Holdings
If you would invest 3,748 in Chuys Holdings on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Chuys Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Good Times Restaurants vs. Chuys Holdings
Performance |
| Timeline |
| Good Times Restaurants |
| Chuys Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Strong
Good Times and Chuys Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Good Times and Chuys Holdings
The main advantage of trading using opposite Good Times and Chuys Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Good Times position performs unexpectedly, Chuys Holdings can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Chuys Holdings will offset losses from the drop in Chuys Holdings' long position.| Good Times vs. Nathans Famous | Good Times vs. FAT Brands | Good Times vs. El Pollo Loco | Good Times vs. Ark Restaurants Corp |
| Chuys Holdings vs. Brinker International | Chuys Holdings vs. Bloomin Brands | Chuys Holdings vs. FAT Brands | Chuys Holdings vs. Potbelly Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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